TaxTMI 
TaxTMI 
2019 (3) TMI 2001
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....facts were fully and truly disclosed at the time of original assessment, there was no failure on the part of the Appellant to disclose fully and truly all relevant facts before the A.O., who completed the assessment U/s. 153A r.w.s. 143 (3) of the I.T. Act. Ref Macdermott International Inc Vs. Addl. CIT and Anr 259 ITR 138 (Uttaranchal). 4) The CIT Appeals should have noted that the Cochin Tribunal in the case of M/s. Cordial Company, in which the Appellant was a partner for the asst year 2004-2005, on similar facts held in ITA No. 119/Coch/2013 dtd 22/11/2013, that the re-opening of the assessment after four years from the end of the asst year was invalid under the proviso to Section 147 of the I.T. Act, since the original asst in that case was completed U/s. 153A r.w.s. 143 (3) and the assessee has furnished at the time of original assessment, the current account copies of the partners, on specific request from the A.O. So there was no failure on the part of the assessee to disclose the necessary particulars. 5) The CIT Appeals should have noted that the A.O. did not also state what relevant facts, if any, was not disclosed by the Appellant before the A.O. at the time of orig....
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....sued which in turn was responded by the assessee vide letter file on 20/07/2011 requesting to treat the return which was filed originally on 01/12/2007 as filed in response to the notice issued. In response to the notices issued subsequently u/s. 142(1) and 143(2) of the Act, the authorized representative had raised objection and challenged the very reopening of the assessment which the Assessing Officer had not entertained. Since the assessee could not furnish any valid explanation with regard to difference in closing balance with the firm M/s. Cordial Company to the turn of Rs. 1,60,596/-, the same was treated as income escaped from assessment and accordingly, added to the income returned in the absence of satisfactory explanation offered. 5. Against this, the assessee went in appeal before the CIT(A). Before the CIT(A) the assessee relied on the decisions of Hon'ble Supreme Court in the case of CIT vs. Foramer France (284 ITR 66), Hon'ble High Courts of Uttaranchal (259 ITR 138), Rajasthan (209 CTR 136), Bombay (243 CTR 520) and also the decision of the Hon'ble ITAT, Cochin Bench in the case of Southern Cashew Exporters vs. DCIT in ITA No. 529/Coch/2010 dt. 02.03.20....
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....sed on change of opinion but on cogent and credible evidence surfaced subsequently which necessitated reopening without which the damage caused to the Revenue could not have been compensated. The CIT(A) was of the view that assessment got rightly reopened based on the fact that the assessee had failed to disclose the amount credited to the extent of Rs. 1,60,596/- into his current account with the firm mentioned supra and source to be explained for the same had not at all been a subject matter of discussion during the course of search assessment proceedings. As a result, the other decisions of the High Courts relied on by the assessee are also not applicable to his case. According to the CIT(A) another decision of the ITAT, Cochin Bench in the case of Southern Cashew Exporters was also not applicable to his case since the original assessment was not completed u/s. 143(3) but u/s. 153A rws 143(3) where the focus was more on seized materials. Similarly, the ITAT Cochin Bench decision in Cordial Company for the AY 2004-05 was also not applicable to the case of assessee for the year under consideration since source for the amount credited in to the current account had not been explaine....
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..... This is search assessment. The entire books of account and documents were seized and were in the custody of the department-. During the course of original assessment, the assessing officer sought details through a specific questionnaire In fact it is apparent from the assessment order dated 24-12-2007 that the assessing officer had called for all the details specifically. The assessing officer on 10-05-2007 by issuing a questionnaire has called for the following details which are apparent from the assessment order: ".... A questionnaire was also issued to the assessee on 10.5.2007, requesting the assessee to produce books of account and to file statement of bank accounts, cash flow statement, partners capital and current account, details of addition made to fixed assets etc." 5. The assessing officer, after considering the specific details with regard to bank accounts, cash flow statement, partners capital and current account, details of addition made to fixed assets etc. filed by the assessee has observed as follows: "After verifying the books of accounts, seized documents and the reply of the assessee along with the details filed in response to the questionnaire the asses....